Increased Density Impacts Office Landlords’ Capital Needs, Piedmont CEO says

Don Miller, president and CEO of Piedmont Office Realty Trust (NYSE: PDM), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.

Piedmont owns and manages class A office buildings located primarily in Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Minneapolis, New York and Washington, D.C.

Miller spoke about disruptions that have occurred in the office segment.

For Piedmont, the biggest issue has been the increase in density. Miller explained that increased density has impacted the capital necessary for landlords to get their properties properly positioned in areas such as parking, restroom capacity, and HVAC distribution.

Meanwhile, Miller said Piedmont’s balance sheet has been a “highlight” for the last several years, in part due to an increase in unsecured debt and a “nicely laddered maturity schedule.”

“We’re very happy with where the balance sheet has gotten to,” Miller said.